The city of Chicago was free to dole out early childhood grants as it saw fit under state law, a federal judge ruled, dismissing a suit brought by a preschool business.U.S. District Judge Robert W. Gettleman tossed Kiddy Kare Preschool Inc.’s suit last month. The suit alleged the city violated the Illinois Administrative Code, the Equal Protection Clause, and due process rights when it denied Kiddy Kare’s application for Prevention Initiative funding.Kiddy Kare, which serves low-income families in Chicago, said in its suit …